Australlian Manufacturing Clothing and Footwear

Question: Discuss about the Australlian Manufacturingfor Clothing and Footwear. Answer: Introduction The Victorian manufacturer is one of the best companies that relates fully to manufacturing industries be it small, medium sized or large ones. The company deals with different industries like the automobile, chemical and plastics, clothing and footwear, textile to name just but a few. Therefore, with this many industries under the big company, it gets chances to reward businesses especially small export businesses that need uplifting in order for the country to improve in its economic status (Abdulsaleh et al, 2013). This increases the development and growth of supply chain management hence international trade between countries that will be purchasing, producing and transporting the exports (goods and services). Discussion The article discusses the supply chain management issue by referring to fact that the Victorian polythene pipe butt wielding equipment manufacturer has already found a solution for a problem that most export manufacturers had been facing for a long time. The challenge was that they lacked funds to finance the maintenance of the art machinery and purchasing of the raw materials needed for manufacturing of large volumes of export orders. However, apart from the businesses lacking the funds themselves, the main problem originated from the fact that the banks in Australia also never had enough cash flow to fund large amounts of cash that was needed. Additionally, even after the location of a potential new distributor for Worldpoly, the business could not get the funds required because of the many rules and regulations and large amounts of charges that accompany that kind of a deal. Supply chain management revolves around the control of raw materials (storage and purchasing), the work in progress and the movement of the finished goods and services from the producer to the consumer. Therefore, with reference to this fact, Worldpoly would be affected because they would not be able to transport their pipes to the new client without enough funds to pay the employees which affected the overall management of the supply chain department. This meant that the business would get problems when purchasing the raw materials, shipping products to South Africa, storage warehouse management or even maintaining the WIP inventory. In the end, this would cause serious negative effects to the business operations not only for the supply chain management but also the other department of the organization. Because of these problems that impeded Worldpolys business operations, they decided to use a different source of finances to fund their operations. They chose to take a loan from a credit lending organization which was used to offering great deals of agreement to small and medium sized businesses that specialized in exports. The deal gave them the opportunity for a long lasting business relationship with the South African client. The main argument is that the small manufacturing businesses dealing with export goods in Australia were faced by a problem of lack of funds to finance their usual business operations. Therefore, with that in mind, they were always under so much pressure to meet the international orders which were obviously very large orders, would not be able to ship products to their client effectively, they could not buy raw materials without stressing themselves among other issues.. This was entirely caused by the banks who had no funds to finance the business (Klapper et al, 2011). However, the credit lending organizations made themselves available fully and offered great deals to the borrowing organizations (Kerr et al, 2009). This lifted their spirits into continuing with their plans and gave them a long-run service which really favored most of the businesses like the Worldpoly. To be precise, yes the article is correct when it says that the Victorian manufacture (Worldpoly) raised funds to facilitate its operations and specifically the international business of pipe exporting. Worldpoly would undergo serious loss and negative effects especially on the supply management departments if they did not look for a different sponsor (Nanda, 2008). To add to that, the manufacturer really loved the deal that they made with Efic (Government export credit agency) because in real terms it was much better than that of the bank. The idea and the choice Worldpoly made actually helped facilitate the supply chain development between the two countries. Strengths The article has given the details of the agreement between Worldpoly and Efic which can actually help another organization make a decision to whether go for the bank loan or Efic loan Even after the banks lacked the money to fund Worldpolys operations, the business tried to source other sources that could finance the project because the main reason for the operation seemed promising. After the deal, the business was able to expand and especially in South-Africa which is currently one of the best partners of exports with Australia. The article has the power of strengthening other small export businesses by giving them ideas on different source of finances which they consider to be better than those of the banks. Weaknesses The articles sates that the deal between the credit lending governmental organization was easy, simple, easy understandable and many other positive qualities that it named. However, this may not be case considering the fact that it is a governmental organization which means that there are so many rules and regulations needed for any governmental deal to be closed (Canales et al, 2008). This is simply because there are so many people to sign paper and approve the deal which may take a longer time than one that is discussed by the article. The article has created an awful profile for the banks in Australia by stating the fact that they did not have the funds to support them in their operations. This probably buried the desire even for large organizations of borrowing from the banks and gave the credit to the governmental credit lending organizations (Kerr et al, 2010). Critics The article was giving so much credit to the government organizations at the expense of the banks. In real situations, the likely wood of that being true is extremely low simply because when it comes to the government the processes are always very slow and long putting in mind the authority structure (Kerr et al, 2009). References https://www.australianmanufacturing.com.au/ Kerr, W.R. and Nanda, R., 2009. Democratizing entry: Banking deregulations, financing constraints, and entrepreneurship.Journal of Financial Economics,94(1), pp.124-149. Kerr, W. and Nanda, R., 2009.Financing constraints and entrepreneurship(No. w15498). National Bureau of Economic Research. Klapper, L.F. and Love, I., 2011. Entrepreneurship and development: The role of information asymmetries.The World Bank Economic Review, p.lhr044. Nanda, R., 2008. Cost of external finance and selection into entrepreneurship. Canales, R. and Nanda, R., 2008.Bank structure and the terms of lending to small businesses. Harvard Business School. Kerr, W.R. and Nanda, R., 2010. Banking deregulations, financing constraints, and firm entry size.Journal of the European Economic Association,8(2?3), pp.582-593. Abdulsaleh, A.M. and Worthington, A.C., 2013. Small and medium-sized enterprises financing: A review of literature.International Journal of Business and Management,8(14), p.36. Klotz, M., 2013. Manufacturing Fictional Individuals: Victorian Social Statistics, the Novel, and Great Expectations.Novel,46(2), pp.214-233.